This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n Security for tenure is a protection you grant to commercial tenants. It provides a tenant with a six-month or longer lease the automatic legal right to lease renewal on the same terms as the current lease once the lease reaches the end term date. <\/p>\n\n\n\n This means the tenant remains in occupation of your commercial property, and a new or renewed lease continues to offer the security of tenure.<\/p>\n<\/div>\n\n\n\n Where the security of tenure applies, a tenant may also request new terms for the renewed lease. You can negotiate these new terms with the tenant. However, if you want to deny the renewal, there are only limited instances<\/a> where you can cease the tenancy.<\/p>\n\n\n\n While security of tenure may provide you with stability in terms of occupation of your property, there are reasons you may wish to avoid it. For example, you might want flexibility to:<\/p>\n\n\n\n If you do want to avoid security of tenure in your commercial lease, there are four ways to do so, as described below.<\/p>\n\n\n\n Perhaps the most obvious way for a commercial landlord like you to avoid security of tenure is to contract out of the relevant provisions in the Landlord and Tenant Act 1954 <\/em>(\u2018LTA\u2019). <\/em><\/p>\n\n\n\n For a commercial lease to exclude security of tenure successfully, you must follow a set of legal procedures to contract out of the provisions of the legislation. This involves:<\/p>\n\n\n\n Security of tenure only applies to commercial leases which last six months or more. Therefore, one way to avoid it is to have a commercial lease with a lease term of six months or less. This way, it is not a protected lease, and further actions are unnecessary to avoid security of tenure.<\/p>\n\n\n\n If you offer your commercial tenant licence, the LTA does not apply, so neither does security of tenure. However, it is essential to ensure that you do have a licence and not a lease<\/a>. <\/p>\n\n\n\n The two are similar as both allow a business owner to occupy commercial premises for their business purpose. However, if you offer a commercial lease, you have an interest in the land and exclusive possession, which a licence does not provide. <\/p>\n\n\n\n Like a licence, the LTA does not apply to a tenancy at will, therefore, nor does security of tenure. A tenancy at will is often used to allow a tenant to occupy a commercial property before a commercial lease commences, such as where the lease agreement is in draft rather than complete format. <\/p>\n\n\n\nWhat is Security of Tenure or Renewal Rights?<\/h2>\n\n\n\n
How Can Landlords Avoid Automatic Lease Renewal\u00a0<\/h2>\n\n\n\n
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1. Contracting Out of Automatic Lease Renewal<\/h3>\n\n\n\n
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2. Short Lease<\/h3>\n\n\n\n
3. Licence<\/h3>\n\n\n\n
4. Tenancy at Will<\/h3>\n\n\n\n
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\n Cheatsheet for UK Leasing Terms<\/div>\n
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